Today, on 27 November, the JSC Grindeks submitted the non-audited consolidated financial statements for the nine months of 2015 to "Nasdaq Riga". Non-audited financial results indicate that the Group’s turnover amounted to 63.5 million euros and has increased by 0.3 million euros or 0.6% in comparison to the first nine months of 2014. While the Group’s net profit, attributable to shareholders of the parent company, was 3.9 million euros in the first nine months of 2015 and has increased by 0.2 million euros or 5.7% in comparison to the three quarters of 2014.
Gross profit margin in the three quarters of 2015 was 44% while net profit margin was 6.1%. In the nine months of 2015 the Group’s production was exported to 63 countries worldwide, a total of 56.9 million euros which is 2.8 million euros or 4.7% less than in the nine months of 2014.
Sales volume of the final dosage forms of Grindeks in the first nine months of 2015 was 56.5 million euros and has increased by 0.9 million euros or 1.6% in comparison to the first nine months of 2014. The sales amount in Russia, other CIS countries and Georgia reached 32.4 million euros in the first nine months of 2015, which is by 12.8 million euros or 28.4% less than in the first nine months of 2014. In comparison to the first nine months of the previous year the biggest increase in sales volumes has been reached in Armenia (20%), Georgia (39%), Kirgizstan (16%) and Turkmenistan (22%).
Thanks to successful business diversification and the development of company’s activities in new markets, turnover of the final dosage forms in the Baltic States and other countries amounted to 24.1 million euros, which is by 13.7 million euros or 2.3 times more than in the first nine months of 2014. The sales volume in the Netherlands in comparison with first nine months of 2014 has increased 6.5 times, in Slovakia – 3 times, while in Vietnam by 91%, Portugal – 89%, Poland – 56%. The sales volume in Latvia in the first nine months of this year accounted to 4.7 million euros and has increased by 1.7 million euros or 57.1% comparing with the first nine months of last year.
In the first nine months of 2015 Grindeks has complemented its range of products and introduced the final dosage form (capsule) of Ursodeoxycholic acid (UDCA) and started its export to Russia and Georgia. Thereby Grindeks has widened its offer in the gastrointestinal tract and metabolism drug therapeutic group. Grindeks has also widened its range of food supplements and introduced two new products – the latest generation lactic acid bacteria and bifidobacteria complex Lactobex® Strong and Herbastress® night. Both products are distributed in the Baltics.
In the first nine months of 2015, sales of the active pharmaceutical ingredients reached 5.8 million euros, which is by 1.6 million euros or 22% less than in the first nine months of 2014. Main markets of Grindeks active pharmaceutical ingredients are the EU countries, USA, Canada and Japan. The most required active pharmaceutical ingredients of Grindeks in the first nine months of 2015 were Oxytocin, Zopiclone, Ftorafur (Tegafur), Detomidine and Xylazine.
The Chairman of the Board Mr. Juris Bundulis: “Our operations in the new markets are succeeding and bringing remarkable results, approving that our business diversification strategy is right. It is particularly pleasing that the sales indicators in Latvia have increased by 57% comparing with the same period last year. However, we have to admit that ongoing situation and events in our key markets – Russian and Ukraine – is still heavy affecting performance indicators of the joint stock company Grindeks. Therefore, by expanding our operations in new markets, using our experience and expertise the equal emphasis will be put on the CIS countries as well.”